Why Google Waymo's self-driving platform is a big deal

Less than a month after officially entering the automotive space as an independent company and announcing its first vehicle, Waymo (the driverless-car company spun off by Alphabet/Google) took the stage at the 2017 NAIAS Detroit auto show to show off its new self-driving platform. And what it had to say could make a profound difference for car companies that feel left out of the self-driving game.

The biggest takeaway from the presentation is the company is now making its own hardware for the platform. By taking this step, Waymo can control the development of its hardware hand-in-hand with its software, putting its future in its own hands.

While the car on display was a Chrysler Pacifica minivan (one of 100 Fiat Chrysler supplied Waymo as part of a partnership agreement), all of the sensors, cameras and other tools for its autonomous system were developed by Waymo in-house.

CEO John Krafcik said the Pacificas are the first vehicles with Waymo’s "all-new, fully integrated hardware suite;"the project's previous efforts had been built using parts manufactured by outside suppliers.

This is a big deal. By taking control of the means of production, Waymo can develop its hardware and software in tandem, à la Apple. While its competitors depend on secondary supply chains and workarounds to adapt their software to outsourced hardware, Waymo can develop the two concurrently as one harmonious system.

Original image has been replaced. Credit: Mashable

Krafcik specifically highlighted Waymo's gains with its in-house LIDAR sensor technology. Along with adding short- and long-range sensing units for better detection than its previous systems, the company has managed to slash the cost of its LIDAR by more than 90 percent in two years from about $75,000 per vehicle.

“This is the first self-driving minivan capable of getting door to door without a person at the wheel,” said Krafcik. “It’s the first product of our first collaboration with an automaker working on a mass-production platform.”

Krafcik's language is telling -- those "firsts" imply that this is just the start of Waymo's autonomous partnerships, with many more to come. By focusing on the production of its own hardware along with software, Waymo won't become a major automaker, at least not yet. Instead, it clearly intends to be the go-to supplier of autonomous driving systems for automakers that don't want the expense of developing their own.

The Waymo-equipped Pacificas will hit public roads in California and Arizona later in January to log more real-world miles to help develop the software. Once the new tech is truly road-ready and primed for mass production, don't be surprised if those Waymo-powered Chryslers start to show up in showrooms, too.